The council declined to sign a development agreement, saying they don't have enough detail to proceed with the proposed business development on land known as the Chemawa Activity Center. The state has since thrown in another obstacle, saying it may have to sign off on the plan before anything is built.

Northwest National wants to convert 107 acres of land south of Volcanoes Stadium into retail, housing and commercial development. Another 77 acres south of Chemawa Road would be used for light industrial space.

City ordinance, however, calls for an 11-acre cap on commercial development and size limits of 50,000 square feet for shops. Councilors say they're willing to ease those restrictions to make the development economically feasible for builders, if the developer submits a master plan to which they can be held.

As well, the state Department of Land Conservation and Development is interested in the development because a Chemawa development could have a regional impact on transportation and land use.

Beyond that, the developers are still trying to acquire all of the land, which at one time had 28 different owners. Northwest National has been able to broker deals with owners and gain control of nearly 70 percent of the land needed for the retail, housing and commercial development.